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SpiceJet recorded consecutive fifth quarter profit
Posted on: 21/May/2016 10:54:24 AM
Budget air carrier SpiceJet Ltd. has finally crossed the line from loss to profit by improving its operational performance. Chairman and Managing Director Ajay Singh took over a year ago and has also cleaned up the legacy mess.
In the quarter that ended March 2016, SpiceJet recorded a net profit of Rs. 73.19 crore, up from Rs. 22.52 crore at the same time last year. For the financial year 2015 - 16, SpiceJet has recorded the highest ever net profit Rs. 407 crore, compared to a loss of Rs. 687 crore in the year 2014 -15.
Says a senior executive, The airline was using the current profitable run to reduce the legacy issues to start on a clean slate. (We) had almost reached to a point where all past claims and dues were cleared. We will use the financial ability that we had in this quarter to completely clear all legacy issues. Every single legacy issue has been addressed. We feel we are in a position to start on a clean slate. We have decided to take a somewhat conservative approach on this (pending claims). By saying that we have taken all the surprises out of anything which is related to the legacy problems of SpiceJet. (We are) hoping his company`s net worth would turn positive in the next few quarters. (We are) looking to further reduce the operational cost by replacing all the six wet leased aircraft by dry leased aircraft, starting June. We have floated the request for proposal (RFP). We have got proposals from both the aircraft manufacturers (Boeing and Airbus). From our perspective because this order is going to live with us for a long time we have to get it right. We believe it`s worth spending a few weeks extra (on it).
In the quarter that ended March 2016, SpiceJet recorded a net profit of Rs. 73.19 crore, up from Rs. 22.52 crore at the same time last year. For the financial year 2015 - 16, SpiceJet has recorded the highest ever net profit Rs. 407 crore, compared to a loss of Rs. 687 crore in the year 2014 -15.
Says a senior executive, The airline was using the current profitable run to reduce the legacy issues to start on a clean slate. (We) had almost reached to a point where all past claims and dues were cleared. We will use the financial ability that we had in this quarter to completely clear all legacy issues. Every single legacy issue has been addressed. We feel we are in a position to start on a clean slate. We have decided to take a somewhat conservative approach on this (pending claims). By saying that we have taken all the surprises out of anything which is related to the legacy problems of SpiceJet. (We are) hoping his company`s net worth would turn positive in the next few quarters. (We are) looking to further reduce the operational cost by replacing all the six wet leased aircraft by dry leased aircraft, starting June. We have floated the request for proposal (RFP). We have got proposals from both the aircraft manufacturers (Boeing and Airbus). From our perspective because this order is going to live with us for a long time we have to get it right. We believe it`s worth spending a few weeks extra (on it).
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